Michael Lowry (Tipperary North, Independent)
Link to this: Individually | In context

Question 353: To ask the Minister for Social and Family Affairs if special savings investment accounts will be included in any means-tested payments from his Department; and the applications which will have this account included in any means-tested assessment. [26253/05]

Séamus Brennan (Dublin South, Fianna Fail)
Link to this: Individually | In context

In assessing means for social assistance purposes account is taken of any cash income the person may have, together with the value of capital and property, except the home. Amounts held in special savings investment accounts are treated in the same manner as other capital. Last October, I requested my Department to carry out an examination of the current arrangements for the assessment of capital, particularly in so far as they apply to SSIAs, with a view to bringing forward proposals in the budget for 2005.

On budget day, I was pleased to announce that the amount of capital disregarded for means test purposes for all schemes — except supplementary welfare allowance — was being increased from €12,694.38 to €20,000, an increase of over €7,300. The enhanced disregard applies to all capital regardless of where it is held, be it in an SSIA, a credit union, with An Post or any other account with a bank or other financial institution.

The new arrangements mean that a single non-contributory pensioner, with no other means, can have capital of up to €28,000 and still qualify for a pension at the maximum rate. This figure is doubled in the case of a pensioner couple. The new arrangements were designed to ensure that social welfare means testing arrangements do not act as a disincentive to claimants to become savers or to penalise those who have been regular savers in the past.